Page 28 - Bullion World Issue 11 March 2022_Neat

Bullion World | Issue 11 | March 2022

Third, these declines will be cushioned partly by the
limited upside to yields. But also due to the case for gold
investments remaining solid in the world where assets
prices are reached around the block and all around the
systemic risks continue be there.

Source: Metals Focus – PGM 5-Year Quarterly Forecast

As far as PGM’s are concerned, the chip shortage crisis
had been a massive headwind for palladium, platinum
and rhodium demand over the last 12 months. PGM
demand from this important sector accounts for the
Source: Metals Focus – Silver 5-Year Quarterly Forecast lion’s shares of all three metals. Later in the year we
expect healthy demand from all these metals.

Source: Metals Focus – Silver 5-Year Quarterly Forecast
Source: Metals Focus – PGM 5-Year Quarterly Forecast

Silver will continue to move in line with gold, but with The dynamic that is worthy of mention is the swing
its traditional higher volatility. The factors which will of the relative fundamentals between palladium and
drive the metals will be generally aligned on the back platinum that we think to lie ahead. For the previous
of macroeconomic developments. One factor which will decade, the 2010’s our estimates show that platinum
play role in the silver appetite is the transition that is was in a sizable market surplus whereas palladium
currently underway in the silver market. The market is was in market deficit. With changing supply-demand
shifting from a position of structural surpluses throughout conditions that is currently underway, it looks like there
the previous decade to one of structural deficits in is a table turn.
the decade ahead. The silver industry demands very
healthy games, which we expect will continue in the Russia is very important to the palladium market, being
foreseeable future. a massive supplier with the current regime being
limited. China is a massive consumer of palladium. So
over time, sales could be diverted to that market. In the
short run, if sanctions end up being more aggressive
then, what is currently tabled could create disruptions
or there could be a short term impact on prices that
would last for few more weeks.

Source: LMC Automotive – Global Engine Forecast

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